Integris Acquires 1nteger Security: Cybersecurity Expansion

The Deal

Integris, the OMERS Private Equity-backed managed service provider, announced its acquisition of 1nteger Security on January 6, 2025. The transaction brings a Florida-based managed security service provider into Integris's growing platform as the company pursues an aggressive expansion strategy targeting $1 billion in revenue over the next five years.

1nteger Security specializes in managed cybersecurity solutions, providing threat protection and security monitoring services to organizations across various industries. The MSSP operates in Florida's competitive cybersecurity market, where demand for specialized security services continues to accelerate as businesses face increasingly sophisticated cyber threats.

Deal terms remain undisclosed, following the typical pattern for mid-market MSP transactions where private equity sponsors prefer to keep valuation metrics confidential during active roll-up strategies.

Strategic Logic

This acquisition directly supports Integris's positioning as a "future-ready MSP" by significantly expanding its cybersecurity service capabilities. Traditional MSPs increasingly recognize that cybersecurity represents both a defensive necessity and a high-margin growth opportunity, making specialized MSSPs attractive acquisition targets.

The deal provides Integris with several strategic advantages:

• Specialized expertise: 1nteger Security brings dedicated cybersecurity professionals and established security operations capabilities that would take years to build organically
• Service portfolio expansion: The acquisition allows Integris to offer comprehensive managed security services alongside its existing IT infrastructure management
• Geographic presence: Strengthens Integris's footprint in the Southeast, a region experiencing strong economic growth and technology adoption
• Client cross-selling opportunities: Existing Integris clients can now access advanced security services, while 1nteger Security's clients may need additional IT management services

The cybersecurity focus aligns with broader market trends where clients increasingly prefer working with fewer vendors who can provide integrated IT and security services under unified management.

Valuation Context

While specific deal terms remain undisclosed, this transaction reflects the premium valuations that specialized MSSPs continue to command in the current market. Cybersecurity-focused service providers typically trade at higher multiples than traditional MSPs due to their specialized expertise, higher-margin services, and strong client retention rates.

Recent MSSP transactions have generally seen EBITDA multiples ranging from 8x to 15x, with premium deals reaching higher multiples for companies with strong recurring revenue profiles and differentiated security capabilities. The exact multiple depends heavily on factors including revenue size, growth rate, client concentration, and the depth of security expertise.

For PE-backed platforms like Integris, the acquisition multiple analysis becomes more complex as sponsors evaluate both standalone returns and the strategic value created through cross-selling and operational synergies across the broader platform. OMERS Private Equity's backing provides Integris with significant capital to pursue acquisitions that might appear expensive on a standalone basis but create substantial value when integrated into the larger platform.

What MSP Owners Should Know

1. Cybersecurity capabilities drive premium valuations: MSPs with genuine cybersecurity expertise and dedicated security operations command higher multiples than traditional break-fix or infrastructure-focused providers. The market clearly values specialized security capabilities as essential rather than optional.

2. PE platforms prioritize strategic fit over standalone metrics: Integris's acquisition strategy demonstrates how well-capitalized platforms can pay premium prices for targets that enhance their overall service portfolio. MSPs considering exit should evaluate how their capabilities complement larger platforms' strategic objectives.

3. Geographic expansion remains a key driver: The Southeast continues attracting PE investment and platform expansion, suggesting strong exit opportunities for quality MSPs in growing markets. Regional consolidation creates multiple exit paths as platforms compete for market-leading positions.

4. Scale requirements continue increasing: Integris's billion-dollar revenue target reflects the scale expectations in today's MSP market. Smaller MSPs should consider whether organic growth alone can achieve the scale needed to remain competitive or if joining a larger platform provides a better path forward for both owners and clients.